Roth IRA for educational saving

elliyana

I already have retirement plan at my work. I want to open a Roth IRA,
but i want to use it for college funds for my children as there is no
tax penalty if i withdraw the money for educational purposes. And if
there is some funds left later, i can still keep it for my retirement.
What do you all think about this? Do you think it's a good idea to do
it this way or it's better to open other types of educational savings
accounts?

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P

Patrick Fitzsimmons, CFP, CRPC, ChFC

99% if the time, I recommend max-funding his and her Roth IRAs before
opening up any education-specific plan. I think your idea is excellent for
the reasons you stated. Additionally, the assets are hidden from the
financial aid calculations and you maintain complete control over the money.